How to quickly build a great real estate portfolio using Buy Rehab Rent Refinance and Repeat

How to quickly build a great real estate portfolio using buy, rehab, rent, refinance and repeat strategies

In this article, you’ll get a complete understanding of how you can quickly build a great real estate portfolio using the buy, rehab, rent, refinance, repeat method. This strategy was started by Danill Kleyman of True Vision Analytics, who is one of the best, if not the best real estate expert of all time that I have come across. I attended one of his online training courses and the above strategy just blew me away. .

Today, I am happy to share my own opinion and I also hope that you can put this method into practice as soon as possible.

If you are in the following market category and have had problems:

• Property,
• buying and selling,
• Purchase and sale of commercial properties
• Commercial building for the purpose of refinancing or selling
• Moving house for profit
• Landlord or homeowner
• new building
• rehabilitators
• And residential and commercial developments

Then this article will definitely benefit you more and you can come back and thank me later.

From what I noticed, the strategy works with owners, that is, if you own the property. Then sell and buy more. Buying and selling commercial property will also benefit if your overall goal is to increase your portfolio. The same goes for home lovers and homeowners who want to add to their real estate portfolio.

One great thing about this strategy is that it works in a flat market and it also works in a volatile market. The juice behind this is that you only use one fund and then you recycle that fund over and over and over again until you reach the expected or portfolio intent limit or your goal. Now let’s see what the strategy actually is and how to use it.

What is the buy, rehab, lease, refinance and repeat strategy?

The strategy according to Daniil is called BRRRR, which means:

• To buy of the property that is the initial stage of each owner of the intention of real estate property investors.
• rehabilitation means to rehabilitate the property to sell or rent it for profit.
• Rent. which means renting for returns on capital investment.
• refinance. Which means recycling the financing used in the initial purchases to buy another property as a result of good returns.
• Repeat. This simply means repeating the process.

Benefits of the BRRRR Strategy

• First of all, they are the most powerful money generating strategies you will ever find in the real estate investment and construction industry.
• The strategy leverages the concept of “speed of money” to help you rack up the same cash deal after deal.
• It allows you to quickly build your portfolio using private money or a limited amount of cash.
• It works in a market that is not appreciating.
• The strategy allows you to build a portfolio with little or no money of your own tied up, but with at least a 20% equity position versus debt that will protect you in a falling market.

How does the BRRRR strategy work?

The first and most important rule here is to make sure you don’t get stuck on the first offer before moving on to the next. Yes! I myself was confused at first when he explained it to me in detail, my jaw dropped, figuratively speaking.

Because these deals, when done right, are math-intensive, and according to Daniil, the best way to not jam your numbers is to make sure your numbers work before you buy the next deal.

In the interest of not wasting time, let me jump right into how this strategy works.

Step 1: Buy a property

This is the first and most important step in the strategy. This shows that you are ready to build your portfolio and that you are committed to making it work.

You can use various sources to obtain financing and this includes:

• Your own cash if you have savings
• Private lender. Just make sure they also refinance your rehabs.
• Bank loan if you know how to prepare a compelling presentation.
• A line of credit from family members, friends, associates, private lenders, or even seller financing.
• To learn more about how to find private money and how to structure private deals that will have lenders begging to invest with you, watch this video.

Step 2: Rehabilitation

Once you’ve secured financing and purchased your first home, you’ll need to rehab it. Always keep in mind to keep the property in step with the market as you will be renting it and don’t overdo it.

Aspire to further create the highest appreciation of the property through larger rehabs. To achieve this, you have to do this:

• When you go in for reassessment, be sure to tell the bank that you just did major renovations and improvements on the property.
• Improvements such as replacement of broken furnace, electrical, HVAC, plumbing, etc. should be mentioned. These will help increase property appreciation quickly.

Make sure you do all your rehab work now so you don’t have any maintenance calls for the next 5 years.

Step 3: Rent the property

This step requires that you start showing the property to potential tenants before the renovation and improvement is complete. You will continue to step four faster if you already have a lease and a tenant to move in as soon as the renovation is complete.

Step 4: Refinance the property

This is a very important step in building your portfolio much faster. As long as the lease is up and the rehab is complete, go to your local community bank to talk about refinancing. This is because local community banks are often required by regulation to lend to local businesses. And they will lend you based on a percentage of the new market value of the property, not based on its cost.

Step 5: Repeat

In this final step, you’ll repeat the entire process with the net result of step 4. This means you’ve paid off your short-term financing and now have a cash-flow asset that makes money every month with zero cash tied up. on your own. With positive cash flow looming and 20% equity on paper, your balance is looking bright and you can go back to your local bank for another loan.

Conclution

These five steps; buy, rehabilitate, rent, refinance and repeat are the steps that make up the BRRRR strategy that you can apply starting today to change. This is how you can quickly build a great real estate portfolio. Again, according to Daniil, there are a couple of crucial points to keep in mind to maximize this strategy.

These are;

• You can find deals like that in almost any market.
• Investment Vs Valuation is what matters most.
• This strategy can work on a 50k deal, 100k deal, or even a 500k deal.
• Be sure to use short-term financing and reliable refinancing.
• You can also use private lenders to refinance, but make sure they have a steady flow of money or a steady job that provides income.
• Always make sure you can get a refinance before you buy the deal. To avoid getting stuck.
• Avoid buying in an area where you will have a hard time renting it. Without a rental agreement, you will not be able to obtain refinancing from your local bank.
• The tradeoff to keep in mind is to avoid spending too much on the renovation. As this could slow down your “speed of money”.
• Always read the fine print on the loan, have an attorney review it just to make sure there isn’t a flash foreclosure clause buried in it.
• Know your numbers first before even entering any deal

This is how to quickly build a great real estate portfolio using the buy, rehab, rent, refinance and repeat strategy. The most important point again is to know your numbers before entering any deal. And your ability to get short-term financing and financing to go. That you obtain financing on the net profit of your first deal. You can use the free Rehab Valuator software to calculate and master your numbers in just a few minutes. Please leave your comment or any questions below and I’ll get back to you right away.